Short-run and the long-run effects of electricity price on electricity intensity across regions ☆

摘要: Abstract Global electricity consumption has increased rapidly in recent years. Improving the efficiency of use as an alternative and/or complement to construction new power plants received attention because potential environmental harm and high cost constructing facilities. The objective our research is determine effects price on intensity manufacturing sector with particular focus how this relationship changes over space time. As a case study, we developed simultaneous-equations system for three-input production function using 108 months panel data (January 2004 – December 2012) 16 regions South Korea. We found that increases improved Korea’s long run, but not short run. electricity-price varied time space. differences may have resulted from different degrees (1) substitutability electricity-consuming equipment between runs, (2) impact demand output regions’ sectors, (3) technology improvement allows substituting or replacing less power consumption. Our findings imply management can be policy tool improve sectors countries government-controlled prices, following caveats. First, are likely effective long-term tool, run some regional exceptions. Second, hinder electricity-use characterized by where reduce more than they demand.